I made a snap decision yesterday. I had £1075 of univested cash in one of my ISA's. I'd had my eye on a couple of US shares (see earlier posts as to why I find them an attractive proposition at the moment).
But I discarded them for the time being, and made another £1000 of an open ended unit trust. The plus points that swung it for me were significant:
1) It's run by Invesco Perputual - one of most reputable UK fund managers
2) The fund is run by Neil Woodford, definitely one of the best fund managers of the last 20 years
3) It provides a monthly (yes monthly!) dividend
4) The yield is in excess of 13%
5) There is a strong possibility of capital gains as the markets recover
6) It has a mixture of shares and bonds - perfect. Some of the shares are overlapping with individual holdings in my portfolio but I am not too concerned about that. The bond element means the dividend payments are tax free - as I have bought in my ISA the tax credit can be claimed back.
7) It only has a minimum top value of £100, with no dealing fees to buy in. I can add light and often.
This is the Invesco Perpetual Monthly Income Plus (Inc) fund. I bought at 71p a unit. I am delighted to have locked into such a strong yield, which will provide extra monthly funds to either top up or for use in other purchases.
I am having a great dividend income week this week - I will post the figures tomorrow. Also, the portfolio value this morning stands at £143,767, up over £2500 on this time last week. I am feeling more optimistic on my portfoolio possibilities than at any time over the last two years.
Now if I can just find a new job all will be well.......
Thursday 30 April 2009
Friday 24 April 2009
Weekly Roundup - 24th April 2009
This has been my poorest week for dividend income so far in 2009. To date, my total dividend income has been £1744.87, an average of £109.05 a week. This was was a desert in terms of dividend payers, with a total of only £19.55 hitting my broker accounts.
I should not complain - stocks should not be bought solely on the dates they pay a dividend, but it is a little comforting to know in these difficult times that a steady income stream is trickling through!
All this weeks dividends were from US stocks - £10.90 for Medical Properties. Assuming the same dividend payments for the other three quarters this makes a yield of 14.6% against my purchase price. Very nice.
£3.87 received from DTE Energy - giving an annualised yield of 5.2%, and finally £4.78 from Realty Income, the monthly paying REIT (giving an annualised yield of approx 5.74%).
All these three are producing income far in excess of current interest rates and I am pleased with the income so far.
Three trades to report this week - all top up buys.
Interior Services Group - bought more at £1.20 to add to my existing holding. This business has been quietly winning 2012 contracts, and are trading on a ridiculously low PE of 3.4. At my purchase prtice, I expect a yield in excess of 11% in the next year based on the forecast dividend of 13.4p, which is comfortably covered by earnings.
The other two were top ups in my ISA - GlaxoSmithKline and Royal Dutch Shell. Both are mega caps and still increasing their dividends. Glaxo have just increased their quarterly dividend by 8% to 14p, and Royal Dutch Shell are expecting to lift their dividend by 5% this year. I bought both at good prices - Glaxo at £10.03 (yield forecast 6.05%) and Shell (forecast yield 7.8%).
I am expecting a lot more dividends next week which is good news.
One final note, my portfoilio at Friday lunchtime stands at £141,444 - up for the week which started at £139444, and I am down -3.1% YTD, which is a lot better than just a few weeks ago.
The Architect
I should not complain - stocks should not be bought solely on the dates they pay a dividend, but it is a little comforting to know in these difficult times that a steady income stream is trickling through!
All this weeks dividends were from US stocks - £10.90 for Medical Properties. Assuming the same dividend payments for the other three quarters this makes a yield of 14.6% against my purchase price. Very nice.
£3.87 received from DTE Energy - giving an annualised yield of 5.2%, and finally £4.78 from Realty Income, the monthly paying REIT (giving an annualised yield of approx 5.74%).
All these three are producing income far in excess of current interest rates and I am pleased with the income so far.
Three trades to report this week - all top up buys.
Interior Services Group - bought more at £1.20 to add to my existing holding. This business has been quietly winning 2012 contracts, and are trading on a ridiculously low PE of 3.4. At my purchase prtice, I expect a yield in excess of 11% in the next year based on the forecast dividend of 13.4p, which is comfortably covered by earnings.
The other two were top ups in my ISA - GlaxoSmithKline and Royal Dutch Shell. Both are mega caps and still increasing their dividends. Glaxo have just increased their quarterly dividend by 8% to 14p, and Royal Dutch Shell are expecting to lift their dividend by 5% this year. I bought both at good prices - Glaxo at £10.03 (yield forecast 6.05%) and Shell (forecast yield 7.8%).
I am expecting a lot more dividends next week which is good news.
One final note, my portfoilio at Friday lunchtime stands at £141,444 - up for the week which started at £139444, and I am down -3.1% YTD, which is a lot better than just a few weeks ago.
The Architect
Sunday 19 April 2009
Welcome
Welcome to my new blog. My aim is to detail my investment activities (on at least a weekly basis) as I continue to develop my investment portfolio.
I have been investing since late 2003, and am 38 years old. My portfolio value stands at £141,000. The majority (but not all) of my investment decisions are income based (to provide a steady and rising dividend income stream).
Each week I will post my thoughts on companies I am looking at, as well as a summary of my dividend income.
I will also provide an update on capital performance at the same time - as there is little point in achieving a desired dividend income if it eats away at your starting capital!
I am based in the UK, and a fair proportion of my investments are UK based. I do, however, increasing look at US stocks. I buy these in my ISA so the income is tax free and I do not have to declare it on my tax returns. I like US stocks at present - I feel they will be the first to emerge from recession and currency movements are also in my favour.
One last point - these are all my own decisions made only for me. Nothing said is a recommendation to buy or sell and you MUST make your own decisions on whether to purchase a stock or not!
I hope you enjoy!
I have been investing since late 2003, and am 38 years old. My portfolio value stands at £141,000. The majority (but not all) of my investment decisions are income based (to provide a steady and rising dividend income stream).
Each week I will post my thoughts on companies I am looking at, as well as a summary of my dividend income.
I will also provide an update on capital performance at the same time - as there is little point in achieving a desired dividend income if it eats away at your starting capital!
I am based in the UK, and a fair proportion of my investments are UK based. I do, however, increasing look at US stocks. I buy these in my ISA so the income is tax free and I do not have to declare it on my tax returns. I like US stocks at present - I feel they will be the first to emerge from recession and currency movements are also in my favour.
One last point - these are all my own decisions made only for me. Nothing said is a recommendation to buy or sell and you MUST make your own decisions on whether to purchase a stock or not!
I hope you enjoy!
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